Newgen Software Technologies Intrinsic Value

NEWGEN • Information Technology
Current Stock Price
₹460.40
Primary Intrinsic Value
₹279.36
Market Cap
₹6446 Cr
-58.3% Downside
Median Value
₹191.83
Value Range
₹108 - ₹375
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

NEWGEN Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹279.36 ₹223.49 - ₹335.23 -39.3% EPS: ₹23.28, Sector P/E: 12x
Book Value Method asset ₹108.29 ₹97.46 - ₹119.12 -76.5% Book Value/Share: ₹108.29, P/B: 1.0x
Revenue Multiple Method revenue ₹138.12 ₹124.31 - ₹151.93 -70.0% Revenue/Share: ₹118.29, P/S: 0.8x
EBITDA Multiple Method earnings ₹198.86 ₹178.97 - ₹218.75 -56.8% EBITDA: ₹464.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹184.16 ₹147.33 - ₹220.99 -60.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹148.99 ₹134.09 - ₹163.89 -67.6% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹191.83 ₹172.65 - ₹211.01 -58.3% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹374.86 ₹337.37 - ₹412.35 -18.6% ROE: 21.6%, P/E Multiple: 16x
Graham Defensive Method conservative ₹216.57 ₹194.91 - ₹238.23 -53.0% EPS: ₹23.28, BVPS: ₹108.29
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

NEWGEN Intrinsic Value Analysis

What is the intrinsic value of NEWGEN?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Newgen Software Technologies (NEWGEN) is ₹191.83 (median value). With the current market price of ₹460.40, this represents a -58.3% variance from our estimated fair value.

The valuation range spans from ₹108.29 to ₹374.86, indicating ₹108.29 - ₹374.86.

Is NEWGEN undervalued or overvalued?

Based on our multi-method analysis, Newgen Software Technologies (NEWGEN) appears to be trading above calculated value by approximately 58.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 17.17 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 21.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 26.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.81x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹215 Cr ₹131 Cr Positive Free Cash Flow 8/10
March 2024 ₹281 Cr ₹173 Cr Positive Free Cash Flow 8/10
March 2023 ₹136 Cr ₹92 Cr Positive Free Cash Flow 8/10
March 2022 ₹143 Cr ₹104 Cr Positive Free Cash Flow 8/10
March 2021 ₹216 Cr ₹145 Cr Positive Free Cash Flow 8/10